Whakatāne has recorded an after-tax deficit of $13.169 million over the past financial year.

The amount is around $1.8m more than the $11.326m budgeted for in year two of Whakatāne District Council’s Long-term Plan 2024-2034.

The council’s finance, performance and risk committee received an initial draft of the 2025-2026 Annual Report before it is submitted to Audit New Zealand.

Finance general manager Paul Davidson said the increase in the expected deficit was primarily driven by higher depreciation expenses of $1.2m and losses from revaluation of financial derivatives amounting to $1m.

The depreciation expenses came from a roading revaluation that hadn’t been received in time to be included in budget planning.

Despite this deficit, the council’s debt levels were about half a million better off than expected, Davidson said.

Debt levels were sitting at $196m net, versus a budget of $212m.

The difference was reflective of having delivered only 60% of projects budgeted for.

The council delivered just under $40m worth of capital projects over the past year, which was less than expected. This was because of delays with four major projects, including Murupara and Rūātoki water treatment upgrades, Rex Morpeth Recreation Hub and flood wall integration projects.

The projects were included in the $1.5m in carry forwards to be included in the next year’s budget for programmes that will continue in future years.

“Overall, from a balanced budget perspective, once you make adjustments for things like capital subsidy [central government grants] funding of depreciation and debt-funded operational expenditure, underlying operating performance remained close to budget expectations,” Davidson said.

LDR is local body journalism co-funded by RNZ and NZ On Air.